“The History of ITW - During its nearly 100
years of existence, ITW's recipe for success has been focused on creating
value-added products for key customers around the world. We do this by growing
our business and making acquisitions that provide additional product solutions
to our customers. We invite you to learn more about the history of our company.
The beginning - In 1912, on the eve of World
War I, Chicago
financier Byron L. Smith placed an ad seeking an investment opportunity for “a
growing manufacturing business.” Four men answered: Frank W. England, Paul B.
Goddard, Oscar T. Hogg and Carl G. Olson. Together, these forward-thinking
businessmen formed a company to manufacture and sell metal-cutting tools. The
company expands its original metal cutting tool products to include truck
transmissions, pumps and other items for America’s World War I effort. The
genesis of Signode, which later joins ITW, begins with John (Jack) W. Leslie’s
investment in a company that incorporates coil steel strap and seals for
packaging containers and products. The DeVilbiss family works diligently to
combine an adjustable atomizer with a spray gun. Their innovation results in
the development of spray finishing for the application of paint. DeVilbiss
later becomes a significant portion of ITW’s business.
C.C. Hobart and his sons, Edward A. and William
H., incorporate Hobart Brothers Company, another business that will later be
acquired by ITW. Initially, the company will market a battery charger.
1920s - ITW engineers develop the Shakeproof
twisted tooth lockwasher, based on a design originated by Richard K. Hosking. Hobart
Brothers builds its first electric arc welder.
Another future ITW welding operation is
launched when Niels Miller recognizes a market for small, affordable arc
welders that operate from household single-phase power. Using scrap sheet
metal, core and coil materials, he hammers together his first AC welder in his
basement.
1930s - Harold Byron Smith, grandson of Byron
L. Smith, joins the company and later succeeds his father, Harold C., as
president. Hobart Brothers produces its first coated electrodes and enters the welding
filler metal business. Harold Ransburg experiments with applying high voltage
in spray painting to reduce waste and improve even surface coating. Over time,
his company grows its electrostatic painting capabilities before being acquired
by ITW.
1940s - ITW’s contributions during WWII include
representation on the War Production Board and development of a new timesaving
wafer cutter to rifle heavy artillery barrels. Led by Harold B. Smith, ITW
first decentralizes its operations to better focus on specific markets—a
strategy the company maintains today. The Shakeproof business moves its offices
from Chicago to Elgin, Illinois.
The Elgin site still serves as the unit’s U.S.
headquarters today. In its new location, Shakeproof begins manufacturing
plastic fasteners and components.
1950s - In order to expand success of
Shakeproof’s plastic fastener and components lines beyond automotive
applications, the Fastex operating unit is created to develop these products
for other mass production industries. Two new operations are formed to provide
major contributions to the general industrial and defense sectors. The Licon
division begins production of electric switches and related products, which
grows and expands to become ITW Switches. In addition, Spiroid, known for its
right-angle gear product, builds upon the company’s original hobs and milling
cutter lines to expand the company’s metal fabrication capabilities.
1960s - By its 50th anniversary, the company
has been officially named Illinois Tool Works (ITW) and is listed shortly
thereafter on the New York Stock Exchange with an initial stock price of $26.
Since then, ITW’s performance has been consistently strong—each new decade has
added significantly to the company’s growth. Fueled by its product developments
for the construction industry, ITW became the only company in the world to
produce fastening systems for wood, metal and concrete/masonry applications. Concurrently,
the beverage packaging industry was transformed when the new Hi-Cone operating
unit invents the six-pack ring carrier. ITW extends its global reach when
German components manufacturer Ateco and Australian company W.A. Deutsher are
acquired. Ateco joins to provide Shakeproof and other products to European
markets, and W.A. Deutsher furthers ITW’s reach into the region’s construction,
industrial and packaging markets.
Diversifying a portion of Shakeproof’s
capabilities results in the formation of Buildex, a new business unit that
becomes a leading supplier for the construction industry.
1970s -The 1970s saw rapid growth of ITW’s
manufacturing of components, fasteners, filters and assemblies for automotive
companies around the world, along with new capabilities to provide sealants,
sorbent materials and other specialty chemical products used in industrial
maintenance. ITW acquires Chronomatic, which utilizes proprietary polymer
technology on dashboard controls and other components, to further its
capabilities aimed at the automotive industry. As a result of Fastex’s
continuing advancements in the use of plastics, the Deltar operating unit is
formed to augment ITW’s capacity to supply automotive components. With the
acquisition of Devcon, ITW takes a major step to solidify its ability to supply
adhesives and epoxies for a variety of industrial applications.
1980s - In the 1980s, ITW began to increase
significantly its acquisition activity and extend its reach. More than three
dozen acquisitions serving both existing and new markets were made, including
Dykem, Magnaflux, Mima, Minigrip, Norwood Marking, Paslode, Philadelphia
Resins, Plastiglide, Ransburg Corporation (with its Gema, Micro-Poise and SIMCO
businesses), Shippers Paper Products, Signode and SPIT. The company nearly
doubled its revenues with the purchase of Signode, a leading multinational manufacturer
of metal and plastic strapping, stretch film, industrial tape, application
equipment and related products. By the close of the decade, ITW entered the
finishing systems market with acquisitions of companies that provide liquid and
powder applications for conventional and electrostatic painting. A portion of
Fastex becomes the basis for the new Nexus operating unit, which extends ITW’s
role as a supplier of plastic products to a variety of consumer applications.
ITW enters a number of joint ventures
domestically and internationally, including the formation of Zip-Pak with Dow
Chemical. ITW later repurchases Dow’s interest in order to combine Zip-Pak with
the Minigrip business.)
1990s - During the 1990s, acquisitions
increased ITW’s presence in the important metal fabrication and welding
markets. ITW also increased its reach in the consumer and industrial packaging
markets with enhanced capabilities in case sealing, carton printing,
decorating, protective shipping, shrink and stretch wrapping and palletizing
products and systems. Approximately 100 worldwide acquisitions were made during
this time, including Akron Standard, Anchor Fasteners and Stampings, CS
Packaging, DeVilbiss/Volstatic, Dynatec, Hobart Brothers Company, Miller Group,
Orgapack, Trans Tech, United Silicone and Vortec. The acquisition of Premark
International, a manufacturer of commercial food equipment and laminate
products, marks the largest acquisitions in ITW’s history. Premark’s well-known
brand names include Hobart, Wilsonart, Vulcan and Traulsen.
2000 - ITW’s proven strategies of increasing
market penetration with product innovations, extending current products to new
industries and acquiring businesses that improve customer offerings provide the
foundation for continued success in the 21st century.
Today, our 825 decentralized business units in
52 countries employ approximately 60,000 men and women who are focused on
creating value-added products and innovative customer solutions. The dedication
of our people is the basis for our success and longevity.”